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Endogenous Intellectual Property Rights and North-South Trade

Author

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  • Schäfer, Andreas
  • Schneider, Maik T.

Abstract

Even though most countries have agreed to a harmonization of intellectual property rights by signing the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), there is still much dispute about the optimal level of protection of intellectual property rights in the world. Particularly some developing countries argue that the high protection standards in TRIPS benefit the North at the expense of their own welfare. On the other hand, many developed countries, mostly located in the northern hemisphere, have the impression that the legal practice in the South leaves much to be desired. In this paper, we provide a framework unifying micro- and macroeconomic perspectives which is capable to analyze the North's and the South's incentives for providing IPR protection. This research suggests that current IPR policies are conducive for economic growth. Moreover, the South may experience welfare gains if the research productivity of the North is not too low.

Suggested Citation

  • Schäfer, Andreas & Schneider, Maik T., 2011. "Endogenous Intellectual Property Rights and North-South Trade," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48689, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc11:48689
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    References listed on IDEAS

    as
    1. Diwan, Ishac & Rodrik, Dani, 1991. "Patents, appropriate technology, and North-South trade," Journal of International Economics, Elsevier, vol. 30(1-2), pages 27-47, February.
    2. Eicher, Theo & García-Peñalosa, Cecilia, 2008. "Endogenous strength of intellectual property rights: Implications for economic development and growth," European Economic Review, Elsevier, vol. 52(2), pages 237-258, February.
    3. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    4. Tor Jakob Klette & Samuel Kortum, 2004. "Innovating Firms and Aggregate Innovation," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 986-1018, October.
    5. Martin L. Weitzman, 1998. "Recombinant Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 331-360.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    7. Lai, Edwin L. -C. & Qiu, Larry D., 2003. "The North's intellectual property rights standard for the South?," Journal of International Economics, Elsevier, vol. 59(1), pages 183-209, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Endogenous Growth; Intellectual Property Rights; Trade; Dynamic Game;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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